Characteristics Of Mnes

2.2.3 Information about MNEs

Traditionally, multinational enterprises are majorly from developed countries. These MNEs are always possessing large amount of capital, advanced technologies, management skills and they have established comprehensive policies. To some extent, they can globally exploit more markets with support of their inherent advantages.

There are various definitions and descriptions of the characteristics for these MNEs. According to Caves (1996), multinational enterprises are those enterprises that have possessed overseas subsidiaries and have tight control and management. Foss and Pedersen (2002) state these MNEs are capable to transfer competitive knowledge through their superior abilities.

Besides, it is also widely accepted

To some extent, it is also an emerging country. According to Drabble (2000), the development of modern Malaysia is an attractive case, and it caused some challenges to some conventional models of state development. In the last 4 decades, the rapid development in manufacturing, especially in electronics and textiles created new jobs in the urban area. Although Malaysian economic growth still have gap compared to other East Asian Newly Industrialized Countries like South Korea, Malaysia’s economic growth is still positive (Drabble, 2000).

Sim (2006) analysed Malaysian MNEs’ internationalization characteristics and strategies from the perspective of investment development path through the implementation of Eclectic Paradigm. According to Sim (2006), both extents and patterns of international production are determined by the configuration of 3 advantages, which are ownership advantages, internalization advantages and location advantages. In his opinion, the investment waves are not only from developing countries, but also from emerging countries like Malaysia. The MNEs from these areas are trying to improve their ownership advantages and then operate more strategic seeking FDI through higher equity and control modes like mergers and acquisitions. From this perspective, MNEs in countries like Malaysia is still improving their strength and becoming more

To be specific, investment arrangements abroad are still possessed by the Prime Minister (Sim, 2006). For MNEs, the supports, especially financial and political supports from government often give those firms more incentives to expand their business. For example, in Malaysia, tax incentives from government enhanced their overseas incomes which were ultimately remitted back the country in 1995 (Sim, 2006).

According to Dunning, the 4 motivations promote MNEs in foreign productions: market seeking, resources seeking, efficiency seeking and strategic-asset seeking. Therefore, the first research question can be associated with the OLI theory to reveal the motivations of internationalization for Malaysian wooden furniture manufactures.

According to Ramamurti (2012), the growth of MNEs from developing and emerging countries as well as the slowdown of MNEs from developed countries made it necessary to reconsider global strategies for all firms. In detail, all MNEs have to explore new opportunities and resources in their markets, while they have to rethink how to take advantages in the rest of the world (Ramamurti,